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The problem of the Turkish economy is not Interest rates. It is not even inflation. The problem is Erdogan. This is, in a nutshell, the approach of the international media and analysts, from France, United States, Germany to Israel, due to the ridiculous situation allowed in the neighboring country in the last -main- 24 hours.
“Few people would envy the next president of the Central Bank of Turkey or the next finance minister” British newspaper reports Financial times. In fact, the situation in the country is an example that should be avoided. Former Minister of Finance of Turkey Berat Albayrak Besides being the son-in-law of President Erdogan, or perhaps mainly because of this, he was also the Tsar of two turbulent years during which Turkey experienced a major recession, the COVID-19 pandemic and a the pound fell to around 45%.
Many in Turkey, including some officials from Erdogan’s ruling party, believed that the president was grooming his son-in-law. as the future party leader and even as his possible successor. However, in an extremely unusual resignation statement posted on Instagram on Sunday, just one day after the Turkish president’s decision to behead the central bank governor. Murat wisal, the Minister of Finance abruptly announced his resignation, resulting for more than 4 hours the media of the neighboring country they haven’t been mentioned in the news at all, waiting for the “line” of President Erdogan.
But things didn’t stop there. According to Jumhuriyet newspaperErdogan’s son-in-law and resigned Finance Minister Berat Albayrak shake hands with the new central bank governor Nachi Agbal!
International media report that the issue does not concern two or more political and economic actors in the country, but a single person. The “Sultan” Erdogan himself.
The Turkish president has long opposed what he calls the “interest rate lobby,” a “shadow group” that believes it wants to raise interest rates solely for the sake of speculation. Erdogan endorsed one radical theory that inflation is driven by tight monetary policy, contrary to the orthodox line among economists that raising interest rates would be the proper way to combat Turkey’s high inflation. Erdogan fired the former central bank governor in 2019 for “failing to follow instructions.”
In Turkey, finance ministers and central bank governors are puppets. “It all depends on Erdogan and no one should be optimistic,” he said. Haaretz newspaper from Israel.
At the same time The German press also launches an attack against the elections of the “Sultan”. The groom as Scapegoat, The Frankfurter Allgemeine Zeitung (FAZ) has written an analysis of Turkish President Tayyip Erdogan’s decision to accept the resignation of his son-in-law and Finance Minister Berat Albayrak. Among other things, the columnist notes: “Important members of the (ruling) AKP party, such as former Parliament Speaker Bulent Arinc, whom Erdogan trusts, no longer reconciled with Albayrak’s reassuring assurances that ‘there are no financial problems, only psychological problems.’ While Albayrak was still A businessman, Erdogan allowed him to participate in business trips and bilateral negotiations. His mother-in-law, Emine Erdogan, was also leading his career. “The climate began to change in the spring, when rumors circulated about Albayrak’s extramarital affair with an actress , as a result of which, as it is said, some bodyguards beat him. “
The columnist recalls that the day before Albayrak’s resignation, Erdoάνan had beheaded central bank governor Murat Usal by presidential decree, replacing him with former Finance Minister Nachi Agbal. Only “Turkey’s problem is not so much the available personnel. The problem is the institutions in a presidential democracy, in which all the strings end in the person of Erdogan. One commentator said that no matter how many commanders Erdogan replaces, as if they were Ottoman viziers, Nothing will change. Because even if the central bank is headed by a competent governor, like Agbal, it should also be a co-signer of the president’s decisions on interest rates. “Now that his son-in-law is gone as a scapegoat, Erdogan will have to take full responsibility for the financial misery.”
Losses in the country’s tourism sector, an important source of foreign exchange for the country, due to the pandemic, as well as the reversal of capital flows contributed to the sharp drop in the pound. Despite Monday’s rally, the currency has fallen against the dollar by about a quarter since the beginning of the year. Erdogan’s ambitions to return Turkey to what he sees as “A key and dominant peripheral force” failed, the newspaper reports Financial times.
According to FT, Ankara’s activities in Greek and Cypriot waters are not helping. According to the “Europe 1” network, France will propose the abolition of the customs union in response to Turkish President Recep Tayyip Erdogan’s aggressive rhetoric towards President Emanuel Macron, as well as his provocative actions in the eastern Mediterranean.
It is recalled that the Greek Foreign Minister had also requested the suspension of the customs union Nikos Dendias Turkey continues to violate it unilaterally by adopting unforeseen tariff, legislative and equivalent measures.
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